JJB Sports remains locked in talks to sell its fitness clubs division despite the expiry yesterday of an extension to its standstill agreement with lenders.

JJB issued a holding statement to the Stock Exchange this morning advising investors of the situation and will update again on developments later today.

The retailer said: “The company remains in active negotiations with the preferred purchaser of its fitness clubs business regarding the terms of a proposed disposal and with its lenders regarding the terms of their continued support of the company.

“All parties are working to finalise and document the terms of a proposed transaction and a further announcement will be made later today.”

The preferred bidder for the fitness clubs is understood to be JJB founder Dave Whelan.